Can I retire at age 40 with 2,950,000?

Use the below retirement simulation to view the chances of a successful retirement.
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $2,950,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%13%
1 years$243,608$241,438$239,321$237,255$235,237$232,298
2 years$120,598$118,352$116,175$114,065$112,018$109,060
3 years$79,600$77,344$75,173$73,082$71,069$68,184
4 years$59,105$56,856$54,707$52,652$50,687$47,898
5 years$46,811$44,576$42,455$40,442$38,531$35,847
6 years$38,618$36,400$34,310$32,341$30,488$27,911
7 years$32,768$30,568$28,512$26,590$24,795$22,326
8 years$28,383$26,203$24,180$22,305$20,570$18,209
9 years$24,974$22,814$20,826$18,999$17,323$15,069
10 years$22,248$20,110$18,157$16,378$14,760$12,611
11 years$20,019$17,902$15,985$14,253$12,694$10,649
12 years$18,163$16,068$14,186$12,502$11,000$9,056
13 years$16,594$14,521$12,674$11,038$9,593$7,747
14 years$15,250$13,199$11,388$9,798$8,409$6,659
15 years$14,087$12,058$10,282$8,738$7,404$5,747
16 years$13,070$11,063$9,322$7,824$6,544$4,977
17 years$12,173$10,188$8,483$7,030$5,802$4,323
18 years$11,377$9,414$7,744$6,335$5,159$3,763
19 years$10,666$8,725$7,089$5,724$4,598$3,283
20 years$10,026$8,108$6,506$5,185$4,107$2,870
21 years$9,448$7,552$5,984$4,705$3,675$2,512
22 years$8,924$7,050$5,515$4,278$3,295$2,202
23 years$8,445$6,593$5,092$3,896$2,957$1,933
24 years$8,008$6,178$4,710$3,554$2,658$1,698
25 years$7,606$5,797$4,362$3,245$2,392$1,493
26 years$7,235$5,449$4,046$2,967$2,155$1,314
27 years$6,892$5,128$3,757$2,716$1,943$1,157
28 years$6,575$4,832$3,492$2,489$1,753$1,019
29 years$6,280$4,558$3,250$2,282$1,583$898
30 years$6,005$4,305$3,027$2,094$1,430$792
31 years$5,748$4,070$2,822$1,923$1,293$699
32 years$5,508$3,851$2,633$1,768$1,170$617
33 years$5,283$3,647$2,459$1,626$1,058$545
34 years$5,072$3,456$2,297$1,496$958$481
35 years$4,873$3,278$2,148$1,377$868$425
36 years$4,685$3,111$2,009$1,268$786$375
37 years$4,508$2,955$1,880$1,168$713$332
38 years$4,341$2,808$1,761$1,077$646$293
39 years$4,183$2,671$1,650$993$586$259
40 years$4,033$2,541$1,546$916$531$229
41 years$3,891$2,419$1,450$845$482$203
42 years$3,756$2,303$1,360$780$438$179
43 years$3,627$2,195$1,276$720$397$158
44 years$3,505$2,092$1,198$665$360$140
45 years$3,388$1,995$1,125$614$327$124
46 years$3,277$1,903$1,057$567$297$110
47 years$3,171$1,816$993$524$270$97
48 years$3,070$1,734$933$484$245$86
49 years$2,973$1,656$877$447$223$76
50 years$2,880$1,581$824$414$202$67

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $2,950,000, adding $6,362 every year, while hoping to spend $28,973 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 56/39/5 Blend
39$2,950,000$2,950,000$2,950,000$2,950,000
40$3,257,462$3,101,112$3,055,387$3,436,317
41$3,558,897$3,222,240$3,126,916$3,678,502
42$3,890,106$3,348,332$3,199,869$3,938,329
43$4,254,097$3,479,600$3,274,265$4,220,580
44$4,654,182$3,616,267$3,350,120$4,527,393
45$5,094,010$3,758,566$3,427,451$4,861,115
46$5,577,601$3,906,738$3,506,272$5,224,325
47$6,109,384$4,061,036$3,586,600$5,619,864
48$6,694,240$4,221,725$3,668,450$6,050,850
49$7,337,544$4,389,082$3,751,835$6,520,716
50$8,045,221$4,563,394$3,836,769$7,033,237
51$8,823,797$4,744,964$3,923,264$7,592,564
52$9,680,464$4,934,107$4,011,333$8,203,264
53$10,623,145$5,131,152$4,100,987$8,870,364
54$11,660,571$5,336,443$4,192,235$9,599,392
55$12,802,361$5,550,340$4,285,086$10,396,432
56$14,059,114$5,773,220$4,379,549$11,268,180
57$15,442,510$6,005,474$4,475,630$12,222,004
58$16,965,418$6,247,513$4,573,335$13,266,015
59$18,642,016$6,499,768$4,672,668$14,409,138
60$20,487,931$6,762,685$4,773,631$15,661,201
61$22,520,379$7,036,735$4,876,227$17,033,020
62$24,758,330$7,322,408$4,980,453$18,536,503
63$27,222,690$7,620,217$5,086,309$20,184,760
64$29,936,494$7,930,697$5,193,790$21,992,227
65$32,925,124$8,254,409$5,302,889$23,974,796
66$36,216,551$8,591,938$5,413,600$26,149,968
67$39,841,594$8,943,898$5,525,910$28,537,013
68$43,834,216$9,310,930$5,639,808$31,157,151
69$48,231,843$9,693,702$5,755,279$34,033,753
70$53,075,714$10,092,916$5,872,303$37,192,552
71$58,411,272$10,509,304$5,990,861$40,661,893
72$64,288,595$10,943,634$6,110,928$44,472,991
73$70,762,866$11,396,705$6,232,478$48,660,228
74$77,894,892$11,869,358$6,355,480$53,261,471
75$85,751,683$12,362,468$6,479,900$58,318,430
76$94,407,079$12,876,953$6,605,701$63,877,047
77$103,942,450$13,413,773$6,732,841$69,987,928
78$114,447,463$13,973,932$6,861,275$76,706,816
79$126,020,929$14,558,478$6,990,952$84,095,116
80$138,771,732$15,168,512$7,121,817$92,220,471
81$152,819,862$15,805,183$7,253,812$101,157,396
82$168,297,545$16,469,694$7,386,871$110,987,979
83$185,350,487$17,163,302$7,520,924$121,802,650
84$204,139,258$17,887,324$7,655,896$133,701,034
85$224,840,798$18,643,139$7,791,704$146,792,884
86$247,650,094$19,432,188$7,928,261$161,199,118
87$272,782,018$20,255,979$8,065,473$177,052,948
88$300,473,354$21,116,092$8,203,236$194,501,140
89$330,985,035$22,014,179$8,341,443$213,705,392
90$364,604,604$22,951,970$8,479,977$234,843,854
91$401,648,931$23,931,274$8,618,713$258,112,807
92$442,467,201$24,953,985$8,757,519$283,728,508
93$487,444,212$26,022,087$8,896,253$311,929,229
94$537,004,006$27,137,654$9,034,762$342,977,496
95$591,613,876$28,302,859$9,172,887$377,162,565
96$651,788,768$29,519,977$9,310,456$414,803,142
97$718,096,154$30,791,387$9,447,288$456,250,390
98$791,161,378$32,119,581$9,583,188$501,891,231
99$871,673,566$33,507,169$9,717,953$552,151,996
100$960,392,131$34,956,881$9,851,365$607,502,439